NFU disappointed as dairy prices will drop again in January

The Dairy Crest and First Milk have announced that milk prices will drop further from January 2015.

The Chairman of the NFU Dairy Board has spoken out about his disappointment with the announcement.

Rob Harrison said: “Although the fundamentals of the global supply and demand situation haven't changed this latest price slash is another kick in the teeth and comes at the expense of the average dairy farmer who is now making a significant loss for every litre of milk they produce.

“There are many farmers that have invested heavily over past years and are now suffering.

“I do understand the market fundamentals but ask this. Why do farmers never get the market highs when global commodity prices are at their highest but suffer more than they should when commodity prices hit the floor?

"While the global market situation remains difficult, we need UK processors and retailers to support our farmers in ensuring a long term sustainable future for domestic milk production.

“The NFU will continue to raise farmer issues with milk buyers, retailers and banks, speak to Government to ease the impact of market volatility for dairy farmers and lobby in Europe to ensure that intervention and PSA are workable tools.”